Exercise 22-10 Your answer is partially correct. Try again. Chubbs Inc.'s manufacturing overhead budget for the first quarter of 2017 contained the following data. Variable Costs Fixed Costs Indirect materials $11,800 Supervisory salaries $36,100 Indirect labor 10,800 Depreciation 6,200 Utilities 7,800 Property taxes and insurance 7,500 Maintenance 5,900 Maintenance 5,000 Actual variable costs were indirect materials $14,700, indirect labor $9,300, utilities $9.900, and maintenance $4,600. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,500. The actual activity level equaled the budgeted level. All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance. (a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.) CHUBBS INC. Manufacturing Overhead Flexible Budget Report For the Quarter Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Budget Actual Variable costs Indirect Materials of Unfavorable Indirect Labor Utilities 1 1 59001 36300 T Maintenance Total Variable Costs 9900 4600 38500 Favorable 2100 Unfavorable 1300 Favorable 2200 Unfavorable T C Total Variable Costs Fixed Costs Supervisory Salaries Neither Favorable nor Unfavorable Depreciation Neither Favorable nor Unfavorable Property Taxes and Insurance Y 1000 T Unfavorable Maintenance Neither Favorable nor Unfavorable Total Fixed Costs 54800 55800 1000 Unfavorable Total Costs 91100 32001 Unfavorable (b) Prepare a responsibility report for the first quarter. CHUBBS INC. Manufacturing Overhead Responsibility Report For the Quarter Ended March 31, 2017 Difference Favorable Unfavorable Neither Favorable nor Unfavorable Controllable Costs Budget Actual Indirect Materials 11800 14700 2900 T Unfavorable Indirect Labor 10800 93000 1500 Favorable Utilities 7800 99001 2100 T Unfavorable T Maintenance 5000 5000 1300 T Favorable Supervisory Salaries 61001 36100 of Neither Favorable nor Unfavorable 75000 T Unfavorable